Create a new Deferred "Expense" Journal with preferred options
Go to Accounting>Config>Asset Type
Create a new asset type named "Deferred Expense"
Set the Journal to "Deferred Expense"
Asset Account → Prepayment
Depreciation Entries: Asset Account → Prepayment
Depreciation Entries: Expense Account → Cost of revenue
Auto-confirm Assets → True
Number of Entries → 12
One entry every → 1 month
Create/ open product
Go to invoicing tab
Set the asset type to "Deferred Expense"
Set the Expense Account to "Prepayment"
Create PO and select the product you created.
Make sure that the product is set correctly with the expense account.
Select the asset type in the PO Line.
Create a vendor bill and validate the invoice.
Check the journal entries.
Now go to the Accounting> Advisor> Assets.
Review the asset that is created and post entries.
Logic to post:
Vendor bill → Creditor Credited and Prepayment Debited
Posting of the first-month → Prepayment is credited and COGS is debited